Shippers’ Academy Colombo workshop on freight rates

• Impact on freight with IMO 2020 rules, can it be a surcharge?
• Understanding Dos, guarantees and surcharges, etc.
• How to negotiate best freight rates
• Forwarders’ role

Companies involved in international trade (exports and imports) frequently get into misunderstandings when negotiating freight to move cargo from point A to point B. 

The service providers who move freight in different modes of transport offer different options and sometimes confusing quotations are given where contracting parties pay more than what they should paying as freight charges when moving cargo. In international trade, there are mechanisms to obtain greater advantage if negotiating parties have better understanding of the requirements of each other.

Sri Lanka has its own legal guidelines in terms of freight as per the gazette issued by the government of Sri Lanka in 2013. In addition, shippers must understand the obligations and liabilities of freight when using international commercial terms (INCOTERMS). Also, freight negotiations can be different for Less Than Contain Loads (LCLs) vs. Full Container Loads (FCLs). 

The global shipping industry is changing rapidly, and there are many instances, where service providers use anti-competitive practices to gain out of freight. Most shippers due to ignorance of the subject and the law tend to pay exorbitant freight rates and makes exports or imports costlier. 

Surcharges are a common method of additional fees used without much justification by some service providers. In fact, the upcoming IMO 2020 rules of using low sulphur fuels has brought in a new dialogue on what its impact would be on freight rates, certainly it cannot be a surcharge as it’s a migration to anew fuel class and have to reflect on market driven freight rates. On top of this, shippers are confused on matters such as delivery order fees (Dos), guarantees and washing charges, demurrage charges, damages etc.

In view of the above, the Shippers’ Academy Colombo annually conducts awareness sessions to educate the cargo owners and service providers of best practices in negotiating freight rates and freight contracts to avoid misunderstandings and to give a professional approach for parties negotiating freight. 

The training will be held on 17 December, at the Plastics and Rubber Institute, Rajagiriya. The program will be conducted by Rohan Masakorala, CEO, Shippers’ Academy Colombo and Sean Van Dort, Chairman, Global Shippers’ Forum.

Interested parties may contact the Shippers’ Academy Colombo on Tel: 0773820703 or 0113560844

Email: [email protected] and web: www.shippersacademy.lk.